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1. (20 pts) Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. Their capital balances are: Shirley 175,000 Curley 300,000 Burley 275,000

1. (20 pts) Shirly, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively.
Their capital balances are:
Shirley 175,000
Curley 300,000
Burley 275,000

b. Assume instead, Furley puts $250,000 cash into the partnership and is awarded 20% interest.
Record the entry of Furley using the bonus method.
c. Assume instead, Furley puts into the partnership $350,000 of cash and is awarded a 40% interest.
Record the entry of Furley using the goodwill method.

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